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Stratasys (SSYS)
NASDAQ:SSYS
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Stratasys
(NASDAQ:SSYS)54Neutral
Positive Factors
Financial Performance
SSYS delivered better-than-expected Q3 results and provided a solid Q4 guide.
Investment and Growth Opportunities
A $120MM PIPE investment by Fortissimo Capital is acquiring an additional 14% stake in the company at a 10.6% premium to SSYS’ closing price.
Negative Factors
Revenue Guidance
SSYS provided 2025 revenue guidance that at midpoint was slightly below consensus, with revenues expected to be flat to up 2%, as market conditions remain challenging.
Stratasys (SSYS) vs. S&P 500 (SPY)
Market Cap
$747.37M
Dividend YieldN/A
Average Volume (3M)752.25K
Price to Earnings (P/E)―
Beta (1Y)1.35
Revenue Growth-8.26%
EPS Growth17.82%
CountryUS
Employees1,980
SectorTechnology
Sector Strength48
IndustryHardware & Equipment
Share Statistics
EPS (TTM)-1.32
Shares Outstanding70,440,000
10 Day Avg. Volume467,051
30 Day Avg. Volume752,250
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)1.16
Price to Cash Flow (P/CF)N/A
P/FCF Ratio0.00
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$13.67Price Target Upside32.08% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering5
Stratasys Business Overview & Revenue Model
Company DescriptionStratasys Ltd. is a leading global provider of additive manufacturing solutions, commonly known as 3D printing. The company operates in the technology and manufacturing sectors, offering a wide range of 3D printers, materials, and software solutions designed for industries such as aerospace, automotive, healthcare, and consumer products. Stratasys is recognized for its innovation in transforming product design and manufacturing processes, enabling companies to improve efficiency, reduce costs, and bring products to market faster.
How the Company Makes MoneyStratasys generates revenue primarily through the sale of its 3D printing systems, which include both industrial-grade and desktop models. Additionally, the company earns income from the sale of consumable printing materials, such as plastics and metals, which are used in conjunction with its printers. Stratasys also offers software solutions that enhance the functionality and efficiency of its hardware products, contributing to its revenue stream. Service offerings, including maintenance contracts, training, and consulting, provide another source of income. The company partners with various industries to develop customized solutions, and these collaborations often lead to significant sales agreements and recurring revenue opportunities.
Stratasys Financial Statement Overview
Summary
Stratasys faces declining revenues and profitability challenges with negative margins and cash flows. The balance sheet is strong with low leverage, but declining equity suggests potential long-term concerns. Improvements in operational efficiency and cash generation are needed.Income Statement
Stratasys has faced declining revenues with a decrease from $627.6M in 2023 to $578.4M in the TTM. The gross profit margin for TTM is approximately 45.4%, indicating decent production efficiency. However, the company is struggling with profitability as demonstrated by negative net and EBIT margins of -16.1% and -12.1% respectively in TTM, indicating significant operating challenges.45
Neutral
Balance Sheet
The balance sheet reflects a relatively strong equity position with a debt-to-equity ratio of 0.04, indicating low leverage. The equity ratio is 76.8%, showcasing a solid capital structure. However, shrinking stockholders' equity from $884.8M in 2023 to $831.8M in TTM suggests potential financial strain.60
Neutral
Cash Flow
Stratasys has a negative free cash flow trend, with a worsening free cash flow from -$76.7M in 2023 to -$20.2M in TTM, though this represents a relative improvement. The operating cash flow to net income ratio is negative, indicating that operating activities are not generating enough cash to cover net losses.40
Negative
| Breakdown | |||||
| TTM | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 | Dec 2019 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 578.44M | 627.60M | 651.48M | 607.22M | 520.82M | 636.08M | Gross Profit |
| 262.67M | 267.02M | 276.47M | 260.08M | 219.39M | 313.69M | EBIT |
| -69.94M | -87.58M | -57.16M | -79.16M | 266.75M | -11.70M | EBITDA |
| -22.60M | -35.61M | 2.61M | -23.07M | -20.28M | 39.24M | Net Income Common Stockholders |
| -93.30M | -123.07M | -23.25M | -62.93M | -440.18M | -10.67M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 162.59M | 162.59M | 327.84M | 502.18M | 299.09M | 321.78M | Total Assets |
| 1.13B | 1.13B | 1.26B | 1.28B | 990.00M | 1.38B | Total Debt |
| 18.66M | 18.66M | 17.84M | 14.97M | 21.85M | 21.74M | Net Debt |
| -63.92M | -63.92M | -132.63M | -228.21M | -250.24M | -271.75M | Total Liabilities |
| 249.07M | 249.07M | 300.36M | 321.21M | 230.63M | 224.37M | Stockholders Equity |
| 884.84M | 884.84M | 959.43M | 956.01M | 759.37M | 1.16B |
| Cash Flow | Free Cash Flow | ||||
| -20.17M | -76.67M | -95.16M | 9.07M | -1.21M | -36.49M | Operating Cash Flow |
| -7.30M | -61.65M | -75.41M | 35.82M | 27.80M | -11.19M | Investing Cash Flow |
| -31.85M | -3.83M | -7.21M | -291.17M | -52.63M | -69.53M | Financing Cash Flow |
| -1.55M | -1.52M | -2.77M | 227.31M | 228.00K | -22.01M |
Stratasys Technical Analysis
Neutral
10.35
Price Trends
10.21
Positive
9.41
Positive
8.79
Positive
Market Momentum
0.01
Positive
42.89
Neutral
24.00
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SSYS, the sentiment is Neutral. The current price of 10.35 is below the 20-day moving average (MA) of 11.41, above the 50-day MA of 10.21, and above the 200-day MA of 8.79, indicating a neutral trend. The MACD of 0.01 indicates Positive momentum. The RSI at 42.89 is Neutral, neither overbought nor oversold. The STOCH value of 24.00 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for SSYS.
Stratasys Risk Analysis
Stratasys disclosed 47 risk factors in its most recent earnings report. Stratasys reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Stratasys Peers Comparison
Overall Rating
UnderperformOutperform
Sector (59)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
66 Neutral | $916.74M | 57.84 | 2.48% | ― | -0.59% | -0.85% | |
66 Neutral | $297.11M | 20.45 | 4.16% | ― | 6.71% | 243.36% | |
59 Neutral | $477.94M | ― | -9.36% | ― | ― | ― | |
59 Neutral | $22.39B | 11.53 | -18.05% | 2.31% | 5.00% | -25.89% | |
54 Neutral | $747.37M | ― | -10.88% | ― | -8.26% | 17.82% | |
50 Neutral | $420.42M | ― | -240.40% | ― | -12.26% | -431.20% |
* Technology Sector Average
Performance Comparison
SSYS
Stratasys
10.35
-1.25
-10.78%
DDD
3D Systems
3.10
-1.42
-31.42%
PRLB
Proto Labs
38.34
1.87
5.13%
MTLS
Materialise
5.12
-0.04
-0.78%
NNDM
Nano Dimension
2.22
-0.63
-22.11%
Stratasys Earnings Call Summary
Earnings Call Date: Mar 5, 2025 | % Change Since: -2.45% | Next Earnings Date: May 14, 2025
Earnings Call Sentiment Neutral
The earnings call highlighted Stratasys' strong operational efficiencies, improved gross margin, and strategic partnerships, indicating resilience despite macroeconomic challenges. However, overall revenue and product/service revenue declines reflect ongoing market pressures. The balance of achievements and challenges suggests cautious optimism moving forward.Highlights
Improvement in Gross Margin
Adjusted gross margin expanded by 100 basis points to 49.2% for the year, reflecting continued focus on cost controls and operating efficiencies.
Strong Balance Sheet
Maintained a healthy balance sheet with $150.7 million in cash and equivalents and no debt, providing stability and options for growth.
Notable Customer Wins and Partnerships
Secured partnerships with major companies like ArcelorMittal and NASCAR, showcasing the versatility and effectiveness of Stratasys solutions in traditional manufacturing and automotive sectors.
Expansion in Material and Product Offerings
Launched new materials and products, including the Fortus FDC filament dryer, Polycarbonate ESD for electronics manufacturing, and expanded capabilities for Ultem 9085 material.
Growth in Manufacturing Revenue
Generated 36% of revenues from manufacturing, up from 34% in 2023 and over 25% in 2020, with expectations for continued growth in this segment.
Lowlights
Overall Revenue Decline
Consolidated revenue of $150.4 million for Q4 was down 3.8% compared to the same period last year. Full-year 2024 revenue declined 8.8% to $572.5 million from $627.6 million in 2023.
Decline in Product and Service Revenue
Product revenue fell by 4.8% to $105.1 million in Q4 compared to the same period last year. Service revenue for the full-year 2024 was $180.5 million, down from $193.9 million in 2023.
Impact of Macro Headwinds
Faced industry-wide challenges due to macroeconomic headwinds, resulting in constrained capital budgets impacting customer buying behaviors for new systems.
Non-cash Impairment Charge
GAAP net loss for the quarter was significantly impacted by a non-cash impairment charge of $30.1 million related to investment in Ultimaker.
Company Guidance
During the Stratasys Q4 2024 earnings call, the company provided guidance for 2025, expecting revenue to range from $570 million to $585 million, with sequential growth each quarter. They anticipate non-GAAP gross margins between 48.8% and 49.2%, and non-GAAP operating expenses between $254 million to $257 million. Stratasys forecasts non-GAAP operating margins of 4% to 5% and adjusted EBITDA of $44 million to $50 million, equating to 7.8% to 8.5% of revenue. The company's financial strength is supported by a healthy balance sheet with $150.7 million in cash and equivalents and no debt, alongside an expected $120 million investment from Fortissimo Capital. Stratasys also plans capital expenditures of $25 million to $30 million for 2025, with an improved operating and free cash flow outlook compared to 2024.Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.